1. Prepare Vertical Analysis for both the income statement and the balance sheet.2. Examine the company's Assets, Liabilities and Stockholder's Equity. P 2303: FINANCIAL ANALYSIS AND REPORTINGSY 2021-2022(FINAL OUTPUT)ABC INDUSTRIESCONSOLIDATED INCOME STATEMENTDECEMBER 31, 202020202019AmountPercentAmountPercentNet SalesP 38,028,500P 26,315,42016,526,0849,789,336Cost of Goods Sold26,358,500Gross ProfitP 11,670,000Selling Expenses7,111,740General and Administrative Expenses 2,123,4209,235,1602,434,840925,239P 1,509,6016,157,8081,368,4027,526,2102,263,126868,4091,394,717Total Operating ExpensesEarnings before income taxIncome taxNet IncomeCommon Stock sharesOutstandingEarnings per shareOf common stock2,500,0002,498,7500.600.56 CONSOLIDATED BALANCE SHEETAS OF DECEMBER 31, 202020212019ASSETSAmountPercentAmountPercenCURRENT ASSETSCash and Cash equivalentsP 1,271,231P 677,600Account Receivable (Net)994,409773,134Note Receivable350,0003,250,000320,0004,190,000Merchandise InventoriesTotal Current Assets5,865,6405,960,734Property and Equipment(Net) 13,668,85011,798,155TOTAL ASSETSP 19,534,490P 17,758,889LIABILITIESAccounts PayableSalaries PayableIncome Taxes PayableOther accrued expenses1,275,3001,477,800330,000245,200500,20048,339925,2398,000Total Current LiabilitiesP 2,538,5392,271,539Long-Term LiabilitiesMortgage PayableBonds Payable500,000536,0002,340,0002,400,000Total Long-term Liabilities2,900,0002,876,000TOTAL LIABILITIES5,438,5395,147,539STOCKHOLDERS' EQUITYCommon Stock, 2,500,000 sharesat P1 par value per share2,500,0002,498,750Capital in excess of par value1,750,0001,726,250Retained EarningsJanuary 1, 20 XX8,386,3506,991,633Net Income for the Year1,509,6011,424,717Less dividends50,00030,000RetainedEarnings, Dec 31 20XX9,845,9518,386,350TOTAL STOCKHOLDER'S EQUITY 14,095,95112,611,350TOTAL LIABILITIES ANDSTOCKHOLDER'S EQUITYP 19,534,490P 17,758,889

Vertical Analysis: Under this method, each line item is listed in the financial statement as a…

P 2303: FINANCIAL ANALYSIS AND REPORTING SY 2021-2022 (FINAL OUTPUT) ABC INDUSTRIES CONSOLIDATED INCOME STATEMENT DECEMBER 31, 2020 2020 2019 Amount Percent Amount Percent Net Sales P 38,028,500 P 26,315,420 Cost of Goods Sold 26,358,500 16,526,084 Gross Profit P 11,670,000 9,789,336 Selling Expenses General and Administrative Expenses 2,123,420 Total Operating Expenses Earnings before income tax 7,111,740 6,157,808 1,368,402 9,235,160 2,434,840 7,526,210 2,263,126 Income tax 925,239 868,409 Net Income P 1,509,601 1,394,717 Common Stock shares Outstanding 2,500,000 2,498,750 Earnings per share Of common stock 0.60 0.56

P 2303: FINANCIAL ANALYSIS AND REPORTING SY 2021-2022 (FINAL OUTPUT) ABC INDUSTRIES CONSOLIDATED INCOME STATEMENT DECEMBER 31, 2020 2020 2019 Amount Percent Amount Percent Net Sales P 38,028,500 P 26,315,420 Cost of Goods Sold 26,358,500 16,526,084 Gross Profit P 11,670,000 9,789,336 Selling Expenses General and Administrative Expenses 2,123,420 Total Operating Expenses Earnings before income tax 7,111,740 6,157,808 1,368,402 9,235,160 2,434,840 7,526,210 2,263,126 Income tax 925,239 868,409 Net Income P 1,509,601 1,394,717 Common Stock shares Outstanding 2,500,000 2,498,750 Earnings per share Of common stock 0.60 0.56

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.4.10P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...

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